Shake Shack Inc (SHAK)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 470,018 | 443,417 | 395,116 | 435,600 | 407,321 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $470,018K)
= 0.00
The debt-to-capital ratio for Shake Shack Inc has consistently been 0.00 from December 31, 2020, to December 31, 2024. This indicates that the company has not used any debt to finance its operations or investments relative to its total capital structure during this period. A low or zero debt-to-capital ratio can suggest that the company relies more on equity financing or cash reserves to fund its activities, which may indicate a lower level of financial risk. However, it's important to note that a zero debt-to-capital ratio may also limit potential tax benefits associated with debt financing. Overall, Shake Shack Inc's consistent 0.00 debt-to-capital ratio reflects its conservative approach to leverage and capital structure management.
Peer comparison
Dec 31, 2024